ʱ´úµçÆø£ºTimes Electric Corporate Value and Return Enhancement Action Plan2025

To uphold the development concept of ¡°investors ª£rst¡± as a listed company and safeguard the interests of all shareholdersof Zhuzhou CRRC Times Electric Co., Ltd. (the ¡°Company¡± or ¡°Times Electric¡±), the Company, based on its conª£dence in thefuture prospects and value of the Company, published the Corporate Value and Return Enhancement Action Plan 2024 ofZhuzhou CRRC Times Electric Co., Ltd. (the ¡°Action Plan¡±) on 29 March 2024, and published the Interim Evaluation Reporton the Corporate Value and Return Enhancement Action Plan 2024 on 24 August 2024. In accordance with the Action Plan,the Company actively carried out and completed various tasks in 2024, achieving sound results in high-quality operation,technological innovation and improving shareholder returns.In 2025, the Company formulated the Corporate Value and Return Enhancement Action Plan 2025, with a focus on¡°improving business quality, strengthening technological innovation, enhancing investor returns and fostering newquality productive forces¡± and based on its development strategy and business conditions.

Set out below are the performance of the Corporate Value and Return Enhancement Action Plan 2024, and mainmeasures of the Corporate Value and Return Enhancement Action Plan 2025:

Persist in Professional Expansionand Focus on the Main Business forIn-depth Cultivation andReª£nement of Emerging Business

Persist in Innovation-drivenUpgrades to Better SupportHigh-level of Self-reliance andSelf-improvement

Persist in StrengtheningManagement of Proceeds to Boostthe Leap and Advancement of OurPrincipal Business

Persist in Promoting Reª£nement toEnhance Management and DeepenDigital Transformation and Upgrade

Persist in Deepening QualityImprovement and Efª£ciencyEnhancement to Solidify theCompany¡¯s Sustained Proª£tability

Persist in Improving theConstruction of the Board ofDirectors to Enhance ModernCorporate Governance

Persist in Strengthening InvestorRelations Management andEstablishing a Multi-level andMutually Beneª£cial InteractiveMechanism

Miscellaneous

Persist in Enhancing ShareholderReturns and Boosting Conª£dence inthe Secondary Market

Persist in Professional Expansion andFocus on the Main Business for In-depthCultivation and Reª£nement of Emerging Business

EBITDA of Basic earnings per share ofWeighted average returnon net assets of

In 2024, the Company centered on the provision of enhanced services to support the construction of a modernized industrialecosystem. By leveraging our independent core technologies in high-speed rail, we consolidated our resources to drive thedevelopment of strategic emerging industries, expedited the transformation and upgrading of our business while venturinginto new domains, securing victories in untapped markets, and cultivating new sources of growth. These efforts bolstered ourcore capabilities and facilitated high-quality development.

RMB24.909 billion

RMB

5.591 billion

RMB

2.62

9.31%

RMB3.361 billionRMB

3.703 billion

Revenue ofNet proª£t attributable to

shareholders of the Company of

Net cash ª¤ows fromoperating activities ofIn 2024, the Company recorded

RMB10.115 billionEmerging equipment business

14.636

Rail transit equipment business

+13.37%+13.71%

RMB0.158 billion+0.71%

Rail Transit Equipment

BusinessRMB10.990 billion

RMB

1.105 billion

RMB

0.650 billion

RMB

1.891 billion

Rail transit electric equipment business

Communication signal system

Other rail transit equipment business

Rail engineering machinery business

YoY

+7.41%

YoY+12.22%

+67.50%

YoY+95.02%

YoY

YoY

YoY

YoY

(1) Continuously maintain the leading advantage in the rail transit industry and

consolidate our market position while expanding our market share? Secured orders for new energy locomotive traction systems for the ª£rst time? Completed the fully-furnished EMU prototype for CR450? Secured locomotive autonomous driving orders of newly RMB100 million? Maintained a domestic market share of above 50% for urban rail traction system, leading the

industry for 13 consecutive years? Achieved sound progress in maintenance and overseas businesses and substantially increased itsmaintenance revenue? Completed the ª£rst installation of electrical system for electric transmission continuous tampingvehicle? Secured the ª£rst ground-breaking order for large-size high-speed rail laying machine? Communication signal business achieved revenue hitting a record high

(2) Seize development opportunities in emerging equipment industry to rapidly

strengthen and improve our business? Basic devices segmentOur IGBT module business established a clear leadership with the largest share in terms of delivery volume in domestic railtransit and power grid marketsWon bids for seven transmission lines in the power grid market, and secured a bulk order for an overseas ª¤exible DCtransmission project for the ª£rst timeOur power modules for new energy passenger vehicles achieved installation of 2.256 million sets, ranking second with amarket share of 13.7% (according to NE Times)Our semiconductor project phase III at Yixing production line went into operation successfullyThe market share of the sensor business in the rail transit ª£eld continued to occupy a leading position, and we securedpower grid orders for the ª£rst time? New energy vehicle electric drive segmentAnnual installation of 251,000 sets according to NE Times, and penetrated into ª£ve new automaker customersSuccessfully developed the fourth-generation electric drive platform integrated bearing electric drive assembly, reducing system lossby more than 10%? New energy power generation segmentPhotovoltaic inverter business won the bid of more than 20GW in China, ranking at the forefront of the industry, and its annualshipment exceeded 10GW. The number of new contracts for wind hydrogen storage products has increased steadily, and the marketshare of IGBT hydrogen production power supply occupied a leading position domestically? Marine equipment segmentBoth revenue and the number of orders formarine equipment hit record highsLaunch of electric ROVs to market? Industrial converter segmentDelivered newly 300 sets of mining truck electric drivesystem which are applied in 10 countries around the worldSecured central air-conditioning converter orders for datacenters of China Mobile and China TelecomAchieved export of metallurgical rolling mill products for theª£rst time

Equity investments continued to focus on strategic emerging industries such as semiconductors, new energy passenger vehicle electricalsystems, and sensors. We implemented mixed-ownership reforms and industrial restructuring to deepen reforms and facilitate rapiddevelopment of these businesses.In 2025, the Company will unswervingly consolidate and enhance its rail transit business and emerging equipment business. For the railtransit segment, a cornerstone for our high-quality development, we will deeply cultivate our advantageous markets while exploringnew businesses, to enhance our leading core strength. The cornerstone for our high-quality development will be reinforced. In the basiccomponents segment, a new pillar for our high-quality development, the semiconductor business should steadily increase its marketshare by unlocking production capacity on a high quality basis and tapping into new growth directions; and the sensor business shouldmaintain stable market share, improve quality and ensure delivery, riding on the momentum to build up our chip operations and enhancebusiness quality. For the new energy vehicle electric drive system segment, a power source for our high-quality development, we shouldrapidly hone our core capabilities and continuously penetrate into key customer groups to enhance our brand inª¤uence. For the newenergy power generation segment, a growth driver to our high-quality development, we should adhere to an all-element benchmarkingapproach to accelerate overseas expansion and increase market share. For the marine equipment segment, a new pivot for ourhigh-quality development, we should seize the opportunities from electriª£cation to step up strategic investment and synergize ourcross-regional development efforts. For the industrial converter segment, a new engine for our high-quality development, we shoulddeepen and improve our presence in niche areas, expand application scenarios, and extend our business boundaries.

(3) Strengthen industrial layout and build a solid

foundation for high-quality developmentWe continued to strengthen the industrialization capability in industries such as semiconductor, new energy passenger vehicle electricdrive system, and rail engineering machinery. Through the allocation of high-quality resources, we enhanced the specialization level andscale of these businesses. The low and medium voltage power device industrialisation (Yixing) ª£rst-phase construction project has beencompleted, including the factory and related facilities, and has commenced production. The low and medium voltage power deviceindustrialisation (Zhuzhou) construction project has completed its design phase, entered the construction stage, and completed the pilefoundation work. The production base project for new energy passenger vehicle electric drive systems and key components hascompleted all engineering construction and initiated the relocation of existing production lines. The construction project for theChangchun automotive motor base has completed the procurement of line 2 of ª¤at wire motor stator rotor and successfully completedproduction line commissioning and synchronization.

Phase I Construction Project of Industrialization of Low and MediumVoltage Power Devices (Yixing)

New energy passenger vehicleelectric drive system and keycomponents manufacturingbase project

In 2024, the Company continued to maintain signiª£cant R&D investment, and furtherincreased its efforts in fundamental research with a focus on tackling fundamental, urgent,cutting-edge and disruptive technologies.

For rail transit, the Company maintained its leading position in the rail transit industry,occupied the technological high ground, and comprehensively enhanced the intelligencelevel of rail transit products.In emerging industries, we benchmarked against industry-leading enterprises, and closelyaligned ourselves with customer needs with a focus on industrial product demands forpower semiconductor devices, new energy vehicle electric drive systems, sensor devices,medium-voltage transmission systems and wind/photovoltaic converters. By addressingweaknesses and capitalizing on strengths, the Company continuously commercialized R&Dinnovation outcomes, thereby facilitating its rapid business growth.

In 2024, the Company's R&D expenditure reachedRMB2.842 billion, up 29.96%year-on-year.Proportion of R&D expenditure to the Company's revenue was

11.41%, up 1.45 percentage

points year-on-year.

Our subsidiary Zhuzhou CRRC Times Semiconductor Co., Ltd. received thesecond prize ofthe 2023 National Technology Invention Award.Our subsidiaries Chongqing CRRC Times Electric Technology Co., Ltd. and Specialist MachineDevelopments (Shanghai) Co., Ltd. were accredited as National Specialised and New ¡°LittleGiant¡± Enterprise.

RMB2.842 billionR&D expenditure in 2024 of

11.41%

Proportion of R&D expenditureto the Company¡¯s revenue of

Second prize of the 2023National TechnologyInvention Award

Persist in Innovation-driven Upgrades toBetter Support High-level of Self-relianceand Self-improvementWe adhere to self-reliance and strive for self-improvement on technologies, maintain signiª£cant R&Dinvestment, strengthen research on key core technologies, seize the commanding heights oftechnological innovation, and strive to develop Times Electric into an innovative enterprise withglobal competitiveness.

(1) Persist in making substantial R&D investment to make

breakthrough in key core technologies

In 2024, we rigorously initiated scientiª£c research projects, emphasizing the four key elements of¡°demand, planning, benchmarking, and cost¡± in project initiation analysis. We strengthened thelinkage with production lines and market, coordinated the planning of research projects in varioustechnical ª£elds, focused on key areas, and promoted a more focused approach to scientiª£c researchprojects.We emphasized the protection of intellectual property rights, and strengthened the applicationand management of intellectual property rights overseas.

In 2024, with a focus on its core technologies and main products, the Company adhered to and activelyplanned for intellectual property efforts to enhance its inª¤uence in the industry. In 2024, the Companywas granted 278 new patents, including 6 patents in Europe, the United States and Japan, bringing thetotal number of valid patents granted to the Company to 3,762, of which over 60% are inventionpatents. We took the lead or participated in the drafting of international, national, industry and groupstandards in transportation and energy sectors, among which 38 standards were released, leading toour consolidated industry position.

In 2024, new patentsgrant to the Company:

patents in Europe, theUnited States and Japan

3,762

Total number of valid patents

granted to the Company:

(2) Strengthen intellectual property protection to build

a solid technology barrier

In China, we engaged in exchanges and explored collaboration with universities and renowned enterprises on cutting-edgetechnologies such as artiª£cial intelligence and cybersecurity. Internationally, we are advancing our global innovationpartners program to continuously deepen existing collaborations and strengthen two-way interaction with topinternational universities and research institutions to improve scientiª£c research innovation and the application of researchoutcomes.In 2025, the Company will continue to regard the development of new quality productive forces as the core driver to ourhigh-quality development. By sustaining a high level of R&D investment, the Company will adhere to the construction ofits independent innovation capabilities and enhance the supply of high-quality technologies. We will actively undertakemajor national science and technology projects, focus on enhancing original innovation capabilities, and strive to makebreakthroughs and master more fundamental and underlying technologies. We will accelerate the construction of pilotveriª£cation platform and establish a high-level innovation ecosystem, to promote efª£cient commercialization oftechnological achievements and lead and fuel industry development. We will focus on the requirement of ¡°outstandingbrand¡± to deepen our brand leadership activities. Also, we will focus on strengthening fundamentals and addressingweaknesses in our industry chain to actively deploy strategic investments. We will give better play to the role oftechnological innovation in industrial dominance and security guarantee.The Company will deepen collaborative research project initiation, and build a continuously leading technologicalinnovation system. We will strengthen management on cross-department collaborative project initiation, establish a projectinformation synchronization mechanism, and strictly implement the ¡°three-step¡± workª¤ow. We will fully evaluatenecessity of projects on a market demand-driven basis; plot out key milestones in a target-oriented approach; andcomprehensively optimize the resource allocation mechanism in the resource-backed principle. Coordinated efforts will betaken in preparing our blueprint for national (provincial) science and technology awards, key project applications, patentsand standards as well as improving our intellectual property protection and risk prevention mechanisms. The Company willoptimize its global R&D resources and footprints, leveraging the accurate positioning of its UK R&D center to deliverhigh-quality R&D outcomes complementarily. We will continue to strengthen exchanges and cooperation with researchinstitutes at home and abroad, and remain open-minded to take in global high-quality resources.With a focus on fundamental technology research, the Company aspires to create a continuously leading, cutting-edgeproduct platform. To this end, we will consolidate our fundamentals to achieve independency and autonomy of coretechnologies; accelerate technological upgrades to build industry-leading product platforms; and strengthen our testingcapabilities to achieve safe and manageable product veriª£cation. We will earnestly promote effective use of innovativetesting platforms, deeply explore reliability and lifespan testing efª£ciency and optimize the allocation rules on testingresources, to improve testing efª£ciency and safety assurance.

(3) Consolidate global resources to build an open

innovation platform

In September 2021, Times Electric was listed on the Science and Technology Innovation Board of the Shanghai StockExchange with total proceeds of RMB7.555 billion. Since its listing, the Company has used the proceeds to ª£nance projectssuch as the ¡°application project of rail transit traction and network technology and system¡±, the¡°application project on key technologies and system R&D of smart railway bureau and smart urbanrail transit¡±, the ¡°advanced technology R&D application project of new industry¡±, the ¡°R&D andmanufacturing platform construction project of new-type rail engineering machinery¡±, the¡°innovative experimental platform construction project¡± and replenishment of working capital.

In 2024, the Company continued to strengthen management of projects ª£nanced by the proceeds, and the cumulative IPOproceeds utilized accounted for 81.51% of the total amount. During the implementation process of these projects, westrictly followed the regulations governing management of proceeds to cautiously utilize the proceeds, ensuring that theprojects ª£nanced by the proceeds progressed smoothly according to relevant plan. Both the innovative experimentalplatform construction project and the manufacturing platform construction project of new-type rail engineering machineryhave completed the entire conduction work and have been put in use. Thus, we promoted the Company¡¯s principal businessdevelopment through the successful implementation of these projects, and achieved expected returns from these projectswhich enhanced our overall proª£tability.

In 2025, the Company will continue to strengthen management of projects ª£nanced by the proceeds, and the cumulativeIPO proceeds utilized are expected to account for approximately 92% of the total amount. For the innovativeexperimental platform construction project and the manufacturing platform construction project of new-type railengineering machinery, we will complete the remaining project audit and ª£nal accounting, acceptance inspection ofequipment, application for title certiª£cates and ª£ling procedures. For the application project of rail transit traction andnetwork technology and system, the application project on key technologies and system R&D of smart railway bureau andsmart urban rail transit, and the advanced technology R&D application project of new industry, we will effectively proceedwith the project management work. To meet ¡°high goals, high standards, and high requirements¡±, we will timelyidentify and solve difª£culties and pain points of these projects, ensure project execution as scheduled, and achievecontinuous innovation and progress in technologies and products, to provide a strong support to smooth progress of our railtransit, new energy vehicles and other projects ª£nanced by the proceeds.

Persist in Strengthening Management ofProceeds to Boost the Leap and Advancementof Our Principal Business

Addressing the pain points of Times Electric¡¯s operations, in 2024, the Company upheld the business philosophy of¡°high-quality operation and efª£cient management¡±. We continued to implement ¡°Times Electricdigitalization¡± and establish a digital transformation path of ¡°identifying a core focus, leveraging a set ofdata, and integrating a comprehensive system¡±, to continuously stimulate the corporate developmentmomentum. Firstly, the Company focused on ¡°identifying a core focus¡±, targeting the enhancement of operationalcapabilities with transformation. Guided by the Company¡¯s strategy and closely aligned with the core focus of

¡°decomposition and implementation of key business indicators¡±, based on quality, cost, delivery and otherdimensions, the indicators are divided and disintegrated in layers and levels to achieve transparent and effectivemanagement of the entire operational process. Secondly, the Company leveraged ¡°a set of data¡± to foster a shift towardsa data-driven management approach. Utilizing existing information platforms and harnessing the power of big datatechnology, the Company bridged ¡°information gaps¡± and established a uniª£ed data infrastructure to support theefª£cient implementation of digital operations across various business domains. Thirdly, the Company integrated ¡°a

system¡±, ensuring integration of transformation and digitalization. With the goal of ¡°enhancing both efª£ciency andeconomics,¡± the Company optimized its management system and consolidated resources to achieve harmonious

development of the ¡°Times Electric digitalization¡± and improvements in all areas of management.

In 2025, we will continue to deepen the digital intelligence transformation and improve business management efª£ciency.Digital transformation as the inevitable path to high-quality development is a long-term and undisputed task, for which weshould focus on improving core business issues to make concrete and deep footprints of digitalization. Efforts will be alignedwith the goals of digital transformation. We will accurately capture the core elements of digital transformation: solvebusiness pain points, enhance management efª£ciency, improve business indicators, and accumulate organizational assets.The existing achievements of digitization will be utilized properly. Centering on our core businesses and the enabling andsupport processes, we should adhere to the use, evaluation and improvement of the established business rules and theinformation systems in place, while leveraging iterative plan-do-check-act (PDCA) optimizations to empower businessimprovement. Main battleª£elds of digitalization will be identiª£ed. We will streamline the whole core value processesincluding the issue-to-resolution (ITR) process, enhance business standardization and digitalization levels, build our businessupon processes, and run data upon information technology. We will continuously explore further applications of digitalintelligence, employing big data and artiª£cial intelligence to empower business analysis and improvement and support ourbusiness decision-making.

Persist in Promoting Reª£nement toEnhance Management and DeepenDigital Transformation and Upgrade

Times Electric has always adhered to the business philosophy of ¡°contributing to the country through industrialdevelopment¡± and continuously enhanced its proª£tability. In recent years, the Company has pursued high-quality

development driven by digitalization, deepening its reª£ned management practices. It has introduced its digital operation¡°cockpit¡±, which dynamically monitors key indicators and conducts quantitative and precise analysis throughout the entire valuechain. The Company explores value enhancement opportunities from multiple dimensions, including income source expansion,cost reduction and control, efª£ciency enhancement and risk management. While contributing to the steady increase inshareholders¡¯ equity, the Company has maintained a return on net assets of over 7%, achieving mutual beneª£ts and win-winoutcomes for the Company and its shareholders.

In 2024, the Company continued to deepen measures for quality improvement and efª£ciency enhancement. We delved into everylink of the entire value chain, and reª£ned the construction of an open and collaborative technological platform, a high-quality andstable supply platform, and an efª£cient and cost-effective production platform. We built a digital transformation path guided bythe Company¡¯s strategy and closely aligned with core business indicators. We systematically broke down and analyzed theseindicators, ensuring transparent and effective management throughout the entire operational process. We comprehensivelyconducted operational analyses aiming at improving overallproductivity, advancing business enhancements from a resourceallocation perspective, and effectively implemented measures toimprove quality and efª£ciency. We completed the third-phasecapital increase and share expansion project in Zhuzhou CRRCTimes Semiconductor Co., Ltd. by introducing high-calibre,high-technology and high-growth strategic investors and anemployee stock ownership platform to further deepen industrialstrategic cooperation and effectively motivate key employees,thereby ensuring a steady increase in the Company¡¯sproª£tability and continuously strengthening the Company¡¯ssustainability capabilities with high-quality operation andefª£cient management.

In 2025, the Company will focus on important areas and key processes for boosting revenue and proª£tability, strengthen costcontrol, and strictly fulª£ll the primary responsibility of product lines as proª£t contributors. We will accelerate the replication andpromotion of the headquarters¡¯ excellent management achievements in integrated product development (IPD), achieve commonsharing in layers and levels, promote reª£ned management, strengthen duty performance, and solve management imbalance inbranches and subsidiaries. Meanwhile, we will orderly promote management inquiry and review at branches and subsidiaries,timely diagnose and improve the difª£culties, pain points and problems in business management, to enhance the Company¡¯soverall proª£tability.

Persist in Deepening Quality Improvement andEfª£ciency Enhancement to Solidify the Company¡¯sSustained Proª£tability

In 2024, the Company was included into the 2024 Best Practice Cases of Boardof Directors by China Association for Public Companies, in recognition ofunique strengths and leading practices of the board of directors asdemonstrated in the Board¡¯s operation mechanism, director appointment andduty performance mechanisms, digital construction, information disclosuremanagement, investor relations management, and implementation of ESGprinciples.

In 2024, the Company continued to improve its corporate governance mechanisms and accelerated theconstruction of a professional, responsible, standardized and efª£cient board of directors. Firstly, we optimizedthe composition of the board of directors, ensuring that external directors account for a majority of the boardmembers, and independent directors account for no less than half of the board members. We actively expandedthe channels for selecting independent directors. On 27 June 2024, the Company appointed one female directorto promote gender diversity among board members. Secondly, we improved the supportive system forcommunication with independent directors and duty performance by directors. In accordance with the newCompany Law and regulatory requirements, we formulated and revised 22 rules and policies including thearticles of association. Thirdly, the Company implemented a training plan for its directors, supervisors, seniorexecutives, and other key personnel with a training coverage rate of over 90%. This comprehensive trainingplan, conducted both online and ofª¤ine, helped to enhance their knowledge of compliance and equip them withthe necessary skills to diligently fulª£ll their obligations according to relevant laws, thereby safeguarding theinterests of the Company and its shareholders as a whole.

In 2025, as the new Company Law introduced a requirement on employee directors, the Company keenlycaptured this key change, taking it as an important opportunity to further improve its corporate governancestructure and enhance governance efª£ciency. In 2025, the Company intends to elect an employee director whoshall act on behalf of the interests of employees and possess professional skills according to the needs ofcorporate governance. Meanwhile, the Company will, in accordance with the listing rules of the Hong KongStock Exchange and the Shanghai Stock Exchange and based on its actual conditions, leverage the advantagesin its diversiª£ed board structure to optimize member composition of the special committees under the board ofdirectors, continue to optimize the support mechanism for duty performance of independent directors, andfurther strengthen deep communication and collaboration between independent directors and internal teams ofthe Company, to inject new vitality into our business development.

Persist in Improving the Constructionof the Board of Directors to EnhanceModern Corporate Governance

A-grade rating in assessment of information disclosure by the Shanghai Stock Exchange¡°2024 CBN Capital Market Value League Table ¨C Annual Innovative Enterprise¡± by China Business Network¡°Top 30 Listed Companies in Value on the Science and Technology Innovation Board¡± by Securities Times¡°Future Star Listed Company in Manufacturing Industry¡± award by the China Industry Development Forumof Listed Companies

Persist in Strengthening Investor RelationsManagement and Establishing a Multi-leveland Mutually Beneª£cial Interactive MechanismTimes Electric strictly complies with the regulatory requirements of the Company Law, the Securities Law, the RulesGoverning the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange and theRules Governing the Listing of Securities on the Hong Kong Stock Exchange and other laws, regulations and normativedocuments in fulª£lling its information disclosure obligations to ensure that the information is disclosed in a true, accurate,complete, timely and fair manner and all shareholders have fair and equal access to the information, and to safeguard theinterests of all shareholders, especially the minority shareholders.

In 2024, the Company continued to strengthen investor relations management, maintain close communication with investors, and comprehensively establishan efª£cient and transparent platform for communication with investors. We ensured smooth channels of communication with investors and actively engagedin effective communication and exchanges with them, following the principles of being comprehensive, proactive, collaborative, precise, and efª£cient, tobuild a solid communication bridge between the Company and the capital market:

The Company¡¯s recognitions and honours

ESG ¡°A¡± rating from Wind Info¡°A¡±rating in the CSI ESG evaluationNational ¡°Green Supply Chain Management Enterprise¡±¡°Top 50 Central Enterprises¡± award granted at the 2nd Guoxin Cup ? ESG Golden Bull Award ceremony¡°Best ESG Practice Award¡± for listed companies in 2024 by easy-board.cn

Staying in tune with the national trend of green and sustainable development to implement the ESG principles, the Company had disclosed theSocial Responsibility Report consecutively since 2009. In the Social Responsibility and Environmental, Social and Governance (ESG) Report for2023 disclosed by the Company, we additionally disclosed the intensity and categories of greenhouse gas emissions, the total amount andintensity of comprehensive energy consumption, and the total emissions of waste gas, solid waste, hazardous waste and packagingconsumables. Furthermore, we published an essay headed ¡°ESG Report in One Picture¡± on our WeChat ofª£cial account, combining concisegraphics and text to illustrate the essence of the report.

In 2025, in order to better safeguard shareholders¡¯ rights and interests, the Company formulated the Market Capitalization ManagementRules. Accordingly, the chairman of the Board is tasked to oversee the Company¡¯s market capitalization management efforts, and public opinionmonitoring is integrated into our daily management system. Combining various strategies, we will reasonably stabilize market capitalization,ensure the alignment of market capitalization with intrinsic value of the Company, and effectively protect the interests of investors. We willactively communicate with investors through various forms, answer and explain various issues of concern to investors within the scope of legalcompliance, enhance investors¡¯ sense of identiª£cation with the Company, and establish a sound corporate image in the capital market.

The Company will continue to strengthen its ESG management and further enhance its ESG performance to underpin its high-qualitydevelopment.

From 2006 to 2023,

The Company proposed a proª£t distribution plan for 2023 as follows:

Taking into account the needs of investors for returns and the long-term development of the Company

Based on the total share capital of 1,369,339,712 shares as of 26 February 2025, to distribute a cash dividend of RMB10 per 10 shares(inclusive of tax) to all shareholders for 2024; the total amount of cash dividend to be paid out exceeds RMB1.369 billion, accounting for

36.98% of the net proª£t attributable to shareholders of the Company in the consolidated statement of 2024. The cash dividend per share

represents a year-on-year increase of 28.21% over the last year.

Persist in Enhancing Shareholder Returns andBoosting Conª£dence in the Secondary Market

For year 2024, the Company expects to continue to give back to investors based on its ª£nancial conditions. The proª£t distribution plan for 2024 is asfollows:

No bonus issue or conversion of capital reserve into share capital will be made for 2024. In case of a change in the total share capital of the Companybefore the record date for entitlement, the Company proposed to keep the dividend ratio per share unchanged and adjust the total dividendaccordingly, and details of such adjustment will be announced separately. This proposal will be submitted to the Company's 2024 annual generalmeeting for consideration.Adhering to the concept of better safeguarding shareholders¡¯ rights and interests and creating greater value for shareholders, Times Electric hascontinued to implement value realization measures including share repurchase for cancellation. The Company has repurchased46,897,200H shares for approximately HK$1.384 billion(exclusive of expenses) in total. Accordingly, the number of the Company's shares in issue willbe reduced to 1,369,339,712 shares (including 500,432,200 H shares and 868,907,512 A shares). These measuresdemonstrated to the capital market our in-depth recognition of the Company¡¯s operational stability and growth, expressed our ª£rm conª£dence in theCompany¡¯s stable development in the future, and responded to changes in the capital market in real time with practical actions.

In 2025, the Company will continue to implement measures such as share repurchase for cancellation, and will prepare the Shareholders¡¯Dividend and Return Plan for the Next Three Years (2025-2027) of Zhuzhou CRRC Times Electric Co., Ltd.Based on ourdevelopment stage, we will maintain a dynamic balance between business development, performance growth and shareholder returns. Byestablishing a sustainable shareholder value and return mechanism, we aim to enhance the satisfaction and beneª£ts of our investors, allow investorsto share the fruits of growth with the Company, and enhance investors¡¯ conª£dence in our business development.

Since its listing on the Hong Kong Stock Exchange in 2006, Times Electric has maintained a stable dividend policy, with the annual dividend amountaccounting for over 20% of the net proª£t attributable to the parent company. With the steady development of the Company¡¯s performance, thedividend per share has increased year by year. Taking into account the needs of investors for returns and the long-term development of the Company,the proposal has been considered and approved at the 2023 annual general meeting of the Company, under which the cash dividend was paid in fullon 8 August 2024.After the listing of the Company¡¯s A shares on theScience and Technology Innovation Board in 2021,

to distribute a cash dividend of RMB7.8 per 10 shares (inclusive of tax) to all shareholders for 2023; the total amount ofcash dividend to be paid out exceeds RMB1.1 billion, accounting for 35.45% of the net proª£t attributable to shareholdersof the Company in the consolidated statement of 2023. The cash dividend per share represents a year-on-year increase of

41.82% over the last year.

In 2024, the Company advanced its high-quality development by implementing the Corporate Value and Return Enhancement Action Plan. Stayingfocused on its principal business, the Company continued to optimize operational management, improve business quality comprehensively, and strengthenmanagement and maintenance of investor relations, thus safeguarding the legitimate rights and interests of investors effectively.Through continuous evaluation on the measures adopted, the Company further optimized and developed the Corporate Value and Return EnhancementAction Plan 2025 on the basis of the Action Plan 2024. Looking into 2025, the Company will adhere to the key note of ¡°high-quality development andefª£cient management¡±, continuing to enhance its core competitiveness and foster new quality productive forces. Through robust business management andstandardized corporate governance, we will take initiatives to give back to our investors, effectively fulª£ll our responsibilities and obligations as a listed company,and contribute to stable and healthy development of the capital market.This Action Plan is developed based on the Company¡¯s current conditions and does not constitute a material commitment of the Company to investors. Given theuncertainties due to the potential impact from macroeconomic policy adjustments and changes in industry market and environment in the future, among otherfactors, investors are advised to be aware of the risks involved.

Miscellaneous